Rift over first ESOP issuance by UBI, Allahabad Bank

With two public sector banks (PSBs) — United Bank of India (UBI) and Allahabad Bank — looking to offer employee stock ownership plan (ESOP) to their staff, a rift among employees and officers associations over the exercise has already surfaced. This is for the first time that PSBs are issuing ESOPs to their employees.

Recently, UBI’s board of directors had approved a proposal to issue up to 50 million equity shares in one or more tranches by way of ESOP. Allahabad Bank has also got its board approval for issuing 50 million equity shares by way of ESOPs. While, Allahabad Bank